Elizabelle Pang, an analyst from DBS, reiterated the Buy rating on Suzuki Motor (SZKMF – Research Report). The associated price target was raised to Yen2,300.00.
Elizabelle Pang’s rating is based on several key factors indicating a positive outlook for Suzuki Motor. Firstly, Suzuki’s performance in the third quarter of fiscal year 2024 exceeded expectations, with an 11% beat in profits and an upgrade in full-year guidance, highlighting strong earnings and improved margins. This financial strength is complemented by Suzuki’s dominant market position, being the leading automobile manufacturer in India and a top player in Japan’s mini-car segment, both of which offer healthy growth prospects.
Furthermore, Suzuki is positioned to capitalize on the burgeoning demand for battery electric vehicles (BEVs) in India, where government incentives and state-level sales targets are driving growth. The company’s strategic launches, including Maruti’s first BEV motorcycle and automobile, align with this trend and suggest further positive catalysts, such as new car launches and plant developments in India. Despite potential risks related to currency fluctuations and BEV transition challenges, the overall outlook remains favorable, supporting the Buy rating with a raised target price of ¥2,300.
In another report released on February 7, CLSA also maintained a Buy rating on the stock with a Yen2,700.00 price target.